New trend in Africa, that is solar power

This report consists of two subjects. The reason behind Solar energy, the needs it covers and the consequences of it. The second part of this report will be about how Irena operates in this area.

Solar is as we all know an energy-source unlike fossil energy, an energy in unlimited amount. It is also an energy, that does not damage the world as the usual fossil energy, but the thing that makes us give solar energy so much attention it is attractiveness and its match to the African population’s need.

To be green has since the EU top meeting been the new black. When it comes to solar-energy there cannot be a continent that fits the requirements of the solar energy more effectively than Africa. The sole reason being the sun.

The average solar irradiation in Africa by country is significantly better than in most European countries

[1]. To be more precise an example would be required. For an instance Germany has a Sun-Irradiation value that is just 1150 kWh/m2/year, and that is if the slope is optimized. Compare that to the capital of African countries, which ranges between kWh/m2/year 1750 – 2500 kWh/m2/year, and the difference is almost double. Namibia is the country with the strongest solar resource of 2512 kWh/m2/year, but has cumulative installed capacity of just 21 MW, while Germany has 40 GW.

This reason has been one of the many of the new trend in Africa, that is solar power. 2014 was the spring of this new energy trend in Africa, where more than 800 megawatts (MW) of new solar PV capacity were added, which is double the amount the year earlier. And in 2015 another 750 MW was added. Based on this trend, IRENA estimates that with the right enabling policies, Africa could be home to more than 70 Gigawatts (GW) of solar capacity by 2030. The fossil energy source still has an influence in many African households, where only Hydropower remain the leading challenger of renewable energy to the 700 million households, but what about the remaining 600!? à With the technology improvements and cost reductions, where Solar PV module prices declined by around 80% between 2009 and 2015

[2]. Solar power technology has emerged as the obvious alternative to help the remaining 600 million.

The 700 million that lives by using hydropower and other fossil energy, will save money from reduced spending on lighting alternatives. An average solar light user will recoup the cost of their solar light in 10 weeks. After this, a family saves $70 a year – around 10% of their income

[3]. Which in the other end is a boost for the overall economy. Despite these positive notes, and developments the number of PV plants in Africa is low. Reason being legislations in the different countries, but with the growing attention towards renewable energy, a change will be inevitable. To summarize this report in one sentence à Green will with high probability be the new black in Africa.

There is no better time to invest and do business in Ghana/Africa than now. What are you waiting for? We are here to take you there, for more information visit us at www.afriscanlink.com

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Afriscanlink I/S is a business consulting company that serves Scandinavian companies who are interested in doing business in African markets, from entry strategy to on-the-ground operations. We help businesses realize their mission in African markets.